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U.S. Monetary Authorities Did Not Intervene in FX Market during the Fourth Quarter

February 3, 2005

NEW YORK – The U.S. monetary authorities did not intervene in the foreign exchange markets during the October – December quarter, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress.

During the three months that ended December 31, 2004, the dollar depreciated 8.2 percent against the euro and 6.7 percent against the yen. In this period, the dollar’s trade-weighted exchange value declined by 6.7 percent, as measured by the Federal Reserve’s major currencies index.

The report was presented by Dino Kos, executive vice president of the New York Fed and the Federal Open Market Committee’s (FOMC) manager for the system open market account, on behalf of the Treasury and the Federal Reserve System.